Textile and apparel: Export tax rebate increases are more attractive than quota cancellations

In 2009, textile companies generally faced difficulties such as reduced orders, lower prices, and increased capital needs. Under this circumstance, the cancellation of quotas does not constitute a substantial benefit to small and medium-sized textile enterprises. At present, enterprises are looking forward to the continued increase in the export tax rebate rate——

Since January 1 this year, my country’s textile exports will no longer be subject to quotas limit. This news did not cause any obvious reaction among textile companies. In interviews, some entrepreneurs told reporters that, first of all, companies have long expected this; secondly, under the influence of the financial crisis, the demand for European and American textile markets has fallen sharply, and the attractiveness and profit prospects have been greatly reduced. Many textile companies are in a very difficult situation. Market demand will not grow rapidly. Issues such as self-discipline and response still arouse widespread concern among companies.
How to understand corporate self-discipline
After hearing the reporter’s interview question about corporate self-discipline, Zhen Zhongming, chairman of Jiangsu Yixing Leqi Textile Printing and Dyeing Co., Ltd., smiled and said: “Within the scope permitted by law, Here, the ‘corporate self-discipline’ in the media concept is difficult to achieve. It depends on how you understand it.”
Speaking of corporate self-discipline, Zhen Zhongming believes that it contains two meanings. One is that enterprises must operate in compliance with the law; the other is that enterprises must abide by the law. We must avoid major mistakes. In addition, it is understandable that enterprises compete for survival of the fittest in accordance with the laws of market economy.
“Why do you say that? Look at the current situation – the demand in the international textile market, especially the demand for high-end products, has suddenly decreased significantly. However, after the rapid development of our domestic textile enterprises in recent years, there is obvious excess production capacity. .” Zhen Zhongming explained, “As a production enterprise, once an investment is made, it takes a period of time to recover the funds and make profits for the enterprise. However, the international market may change suddenly or be capricious. In this regard, let alone our Chinese textile industry Enterprises, in fact, no country can control. The result of the U.S. government’s excessive printing of money has, on the one hand, caused a false prosperity of excessive consumption in the United States, and on the other hand, caused a large-scale expansion of the production and processing capabilities of emerging market countries. Now, the U.S. economy Problems occurred and the market failed. As a result, China and many developing countries suddenly had a lot of excess production capacity and faced a painful adjustment process.”
“Now there are only two paths in front of entrepreneurs. One is to Overcome difficulties and persevere. The second is to admit defeat and withdraw from the arena. There is no third way.” Zhen Zhongming said, “In the Yangtze River Delta, almost 99% are private enterprises, and the greatest wealth of these entrepreneurs is the enterprise itself. Here At this time of life and death, for entrepreneurs who are trying their best to protect themselves, the meaning of self-discipline may have more new interpretations on the original basis.”
Three difficult problems test the ability to survive.
Lin Zhongyi, chairman of Changzhou Yueye Co., Ltd., believes that the cancellation of quotas does not constitute a substantial benefit to textile small and medium-sized enterprises. What enterprises currently hope is that the export tax rebate rate can continue to increase.
Lin Zhongyi said that whether the European and American markets are declining or recovering, the initiative is not in our hands. Recently, although the State Council has issued a series of policies to support the textile industry, it will not only take time but also require local governments to do a lot of work to truly implement them. For many textile small and medium-sized enterprises that are already in trouble, water from afar cannot quench their thirst, but the effect of the increase in export tax rebates can be immediate and is a real benefit.
Regarding the difficulties faced by textile companies in 2009, Lin Zhongyi summarized three points: reduced orders, lower prices, and increased demand for funds. He believes that all textile companies will be forced to find ways to tide over the difficulties around these three items this year.
“The decrease in export orders this year has been confirmed. There is another change in this, which is that the batch size of orders has become smaller. For example, in the past, the orders we received for fabrics such as denim and khaki ranged from 1.5 million meters to 2 million meters. It is a normal batch size. But now, the general batch size is only 20,000 to 300,000 meters, and 500,000 meters is considered a large order. Such changes in the market have caused some companies that do not have the ability to respond quickly to be eliminated.” Lin Zhongyi explained, ” Price reduction is also an indisputable fact. At present, compared with last year, the price of our orders is on average 1 to 2 yuan lower per meter of cloth. There are objective reasons for this, because the price of cotton has dropped, and the price of cotton yarn per ton has also dropped by nearly 10%. 2,000 yuan, so it is normal for international buyers to ask for price reductions. However, the rapid decline in export fabrics and clothing prices has caused some companies with poor profitability to be eliminated. What is serious is that due to the impact of the international financial crisis, foreign importers have When issuing bank letters of credit to domestic production enterprises, the redemption period of the letters of credit is continuously extended. For example, letters of credit that used to be 20 or 30 days have now been extended to more than 45 days. In this way, the capital turnover cycle of small and medium-sized textile enterprises The demand for funds has increased, and some companies with tight funds cannot continue to survive.”
Universal remedies and exclusive secrets
Faced with a sharp shrinkage in international market demand and intensifying domestic competition The current situation, all entrepreneurs interviewed have formulated “innovation, science and technology” for their companies.”, brand” survival prescription.
After in-depth interviews, the reporter found that in addition to the universal prescription composed of these three keywords, every outstanding company actually has its own exclusive martial arts secrets.
Shandong Lu Liu Zibin, general manager of Tai Textile Co., Ltd., said that mass production of pure cotton single yarn fabrics with 200 to 300 inch count is a sign of the company’s technical level. And they use new fibers to produce summer women’s shirt fabrics and moderately elastic men’s shirts Fabrics and anti-static, anti-radiation, and anti-UV functional fabrics are the main products for new orders from companies.
Liu Guozhong, chairman of Jiangsu Zijinhua Textile Technology Co., Ltd., revealed that after several years of hard work, the company has independent knowledge The property’s jute fine processing technology has been increasingly perfected. In addition to traditional fabric and clothing products, the “Movi” series of products are expanding into the field of industrial textiles.
Liu Yuexing, Chairman of Binzhou Yuyue Home Textile Co., Ltd. and Yixing Zhen Zhongming, chairman of Leqi Textile Co., Ltd., introduced to reporters in detail some of the company’s know-how in product export operations. These unique business skills enabled Yuyue Home Textiles’ export value to increase by 70% last year, and Leqi Textile’s sales in the United States last year Even though orders dropped sharply by 50%, it still maintained a synchronous growth in output, output value and profits.
What Lin Zhongyi showed to reporters were not the company’s regular products. Those projects involved technological innovation, product design, market and business model innovation. , also involves the company’s investment plan in new fields. It is these strictly confidential projects that have achieved good results, allowing the company to compensate for its losses in the production of traditional products.
Similarly, in Shandong Jifa Group, there are two “non-profit companies” “Please don’t enter” production workshop produces two high-tech and high value-added products. Under the guidance of the group leaders, the reporter walked through the winding passages and passed multiple “posts” before being lucky enough to witness the production. On-site. Before the visit, reporters were clearly informed: Absolutely no photography is allowed.
As Shen Jianjun, director of Zhejiang Meizinda Group, summed up: “In the face of a serious crisis, only by doing a professional job that is precise and distinctive can we succeed in the industry. There is a place in the reconfiguration process of the value chain. Specialization, differentiation and irreplaceability are the keys to survival for small and medium-sized textile enterprises. “AAFSGRETEGSDFW

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